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The answer is C) 2,950 But I want to know why and how to calculate this answer. ty 7. Grupo Brasilia is considering expanding a
The answer is C) 2,950
But I want to know why and how to calculate this answer.
ty
7. Grupo Brasilia is considering expanding a production line. The new equipment for the line will cost $60,000. In addition, the cost of installation is $3,000 and there is an annual maintenance contract for $5,000. The new line is expected to generate cash flows for the next four years of 12,000, 17,000, 24,000, and 28,000. GB's discount rate for the project is 7 5/8%. The net present value of the project is closest to: e A) 5,950 B) -2,050 C) 2,950 7. Grupo Brasilia is considering expanding a production line. The new equipment for the line will cost $60,000. In addition, the cost of installation is $3,000 and there is an annual maintenance contract for $5,000. The new line is expected to generate cash flows for the next four years of 12,000, 17,000, 24,000, and 28,000. GB's discount rate for the project is 7 5/8%. The net present value of the project is closest to: e A) 5,950 B) -2,050 C) 2,950Step by Step Solution
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